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Why You Must Get Help When You Have Cash Flow Challenges

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Why You Must Get Help When You Have Cash Flow Challenges

Just about every business I know has cash flow challenges. Whether those challenges are continual or seasonal, the impact on your business is the same. Invariably the stress and worry means negative thoughts and this in turn can spiral the business down further as the people around you will pick up on those vibes. Not only that, but you’ll miss opportunities as you just won’t see them.

Deciding to ask for help is the first step. If you’re like me, this is a challenge in itself. I was brought up to be independent, to figure things out for myself, to not be reliant on anyone else and although that served me well for a long time, in today’s world of collaboration and support, it doesn’t serve me well anymore. Breaking down long standing habits is difficult.

One way to start the process is to identify who can help you with your challenges or issues. Once you’ve identified the person, it is much easier to reach out to them and ask them for assistance. Although, admitting that you have a problem can also be daunting. None of us want to be judged negatively, we all want to be seen as successful. But, in order to change, you will need to be doing things differently and step out of your comfort zone.

There are a number of flow on effects that cash flow challenges cause, namely:

  • Stress and worry leading to arguments.
  • Sleepless nights that cause exhaustion and irritability in the long term.
  • Burying your head in the sand hoping that things will get better by themselves.
  • Withdrawal from friends and family and avoiding social situations.
  • Feelings of inadequacy and that perhaps you’re not cut out to be in business.
  • Thoughts that maybe you should just quit and get a job again.
  • Increased credit card debt.
  • Increased debts to the ATO.

I can think of five reasons why you should seek help.

Reason 1 – The ATO.

When the ATO debt continues to climb and you owe more than $10 000 on an ABN that’s been outstanding for more than 90 days, the ATO has the authority to lodge a default notice with the credit reporting agencies. This is effective from 1 July 2017 – see my earlier article “How To Avoid The ATO Killing Your Credit Rating”.

Reason 2 – Morale.

When times are tough and you’re stressing about cash flow you run the risk of losing your best staff, of service standards falling, of cutting corners in an attempt to save money and in doing so losing clients or customers. As I mentioned earlier, opportunities will slip by without you even being aware of them. Putting on a brave and positive face helps, but people will intuitively know that something’s not quite right.

Reason 3 – Health.

The more stressed and worried you are, the more sleepless nights, the higher the chances that you will have health issues. Your immune system will be low and even a cold or flu will knock you about. I’m no health expert, but it seems that the bigger health issues are often linked to stress too.

Reason 4 – Profit.     

Cash flow and profit go hand in hand. In the long term you need to have profit in order to have positive cash flow. A business that is making losses will always have cash flow challenges. Consider employing a virtual CFO to provide you with regular reporting and accountability to focus on the numbers and improve profits which in turn will improve cash flow.

Reason 5 – Business Survival.

Ultimately if you don’t get help with cash flow challenges, one day you will literally run out of money and you will be forced to close down the business. No one wants that. Take the first step and find either a virtual CFO, a bookkeeper or accountant who has the capability and time to help you work on improving profits and cash flow.

Whether your cash flow challenges are endemic or seasonal, don’t let any more time pass by. I know the first thought most people have is how can I afford to pay for help when I’m already struggling to pay the existing bills. But seek out help, the right support will help you turn around the situation.

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